CHICAGO (Reuters) - Airline shares rocketed higher on
Tuesday, led by Northwest Airlines <NWA.N>, on a sharp decline
in the price of crude oil, which is directly linked to the
price of jet fuel.

Northwest stock gained 17.5 percent to $8.95 on the New
York Stock Exchange. Delta Air Lines <DAL.N> shares gained 11.1
to $7.99 on NYSE. American Airlines parent AMR Corp <AMR.N> was
up 9.4 percent at $8.47 on NYSE. The Amex airline index was up
4.9 percent.

Calyon Securities analyst Ray Neidl linked the rally to a
sell-off in the price of Nymex crude, which was down $3.31 at
$115.44 after notching a record high near $120 on Monday.

The airline industry has been pummeled by soaring fuel
prices that have offset many cost-cutting initiatives
undertaken by the carriers in recent years.

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Neidl said Northwest and Delta shares may also be taking
additional support from the outlook for their upcoming merger.
The two airlines intend to join forces to become the world's
largest airline. "I imagine the market is starting to take some
recognition of that," he said.